Tools and Functions greyed out / unavailable in photoshop and illustrator

I have purchased the Creative Cloud All Apps with 100GB, but when I go to use some of the applications there are tools and functions greyed out / unavailable.

For example I cannot use the pencil tool in Illustrator as it and many other tools are grey and unable to be selected (I've pressed the three dots to open more options as seems to be the main piece of advice on the forums). In Photoshop I cannot select a bunch of tools either.

As I've purchased this and can't see an optiuon to "upgrade" I'm really confused what is happening, should I have gone for a more advanced option to access such simple functions or is this just how it works? If so it's not at all fit for purpose...